According to the Small Business Administration…
Did you know?
What is small businesses’ share of net new jobs?
Small firms accounted for 64 percent of the net new jobs created between 1993 and 2011 (or 11.8 million of the 18.5 million net new jobs). Since the latest recession, from mid-2009 to 2011, small firms, led by the larger ones in the cat¬egory (20-499 employees), accounted for 67 percent of the net new jobs.
Source: Bureau of Labor Statistics, BED. For the latest employment statistics, see Advo¬cacy’s quarterly reports, www.sba.gov/advo¬cacy/10871.
How can small businesses’ share of net new jobs be larger than their share of employment, yet their share of employment remains steady?
As firms grow, they change employment size classes. So as small firms grow, their growth counts toward small firm job gains; but if they pass the 500-em¬ployee mark, their employment is classi¬fied as large firm employment.
Do the unemployed become self-employed?
When finding work is difficult, start¬ing a business can be just as difficult if not more so. But in March 2011, a significant number of the self-employed, 5.5 percent or about 900,000, had been unemployed in the previous year. This figure was up from March 2006 and March 2001, when it was 3.6 and 3.1 percent, respectively.
Which businesses create more jobs—startups or existing businesses?
In the last two decades about 60 percent of the private sector’s net new jobs have been created by existing establishments and about 40 percent from the churn of startups minus closures. While firm births account for many new jobs, job losses from firm closures are equally important in accounting for net effects to employment levels.
Source: Bureau of Labor Statistics, BED.
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